How much will she have at the end of four years

Assignment Help Accounting Basics
Reference no: EM133111529

Question - Sarah will receive from her investment cash flows of $2,800 in one year, $3,100, in two years and $2,900 in four years. Her investment can earn 6.5% per year.

a. How much will she have at the end of 4 years?

b. How much will she have in at the end of 8 years if she doesn't receive additional cash flows?

Reference no: EM133111529

Questions Cloud

What is reggie after-tax cost of debt financing : Reggie's BBQ, Seafood, Haircare, & Tire Emporium, Inc. has a beta on Yahoo finance is 1.76. What is Reggie after-tax cost of debt financing
Find the amount of the dividend : 1. Pacsun's current stock price is 80 dollars. The board has declared that 8,000,000 dollars in cash dividends will be disbursed in 1 month. keeping everything
Determining the ex-dividend date : Consider a firm whose current stock price is $342. Its board of directors has declared that $10 million in cash dividends will be distributed in one month.
What is the price of the bond : A bond with three years to maturity pays an annual coupon of 5.5% and has a face value of 100. The yield curve is flat at 3%, i.e. YTMs of zero-coupon bonds of
How much will she have at the end of four years : Sarah will receive from her investment cash flows of $2,800 in one year, $3,100, How much will she have at the end of four years
Define the term operating leverage : 1. In the chapter introduction we learned that AT&T (T) borrowed $3 billion by issuing bonds in the public bond market. Although this may sound like a lot o
How much extra financing will be needed : Pratyaksh ltd. has generated 1.50 crores from the sale of one of its manufacturing units. The company has an option to invest the money for five years in an inv
What is the current yield on this bond : An investor pays $1,011 for a bond. The bond has a Face Value of $1,000.00 and an annual coupon rate of 4%. What is the current yield on this bond
Yield to maturity of a two-year zero-coupon bond : The table below lists maturities, coupons and prices for three bonds. All bonds have the same default risk and a face value of 100.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the appropriate number of shares for albacore

When calculating basic earnings per share for 2016, what is the appropriate number of shares for Albacore to use in the denominator of the EPS fraction

  Compute the correct inventory value

Assume that Palmquist uses the LIFO cost flow assumption. Compute the correct inventory value under the lower of cost or market rule

  What is the gross profit margin

If swank clothier had sales of 368,000 and cost of goods sold of 323,000. What is the gross profit margin (ratio of gross profit to sales)

  What is the correct make-or-buy decision

If Fornelli, Inc. can purchase the component part externally for $88,000 and only $8,000 of the fixed costs can be avoided, what is correct make-or-buy decision

  Determine the amount to be reported for bad debt expense

If the allowance for doubtful accounts had a debit balance of $800 instead of a credit balance of $1,500, determine amount to be reported for bad debt expense

  What is meant by the holding period

What is meant by the holding period, and why is it advisable to use holding periods of equal length when comparing alternative investments?

  Prepare a single-step pro forma income statement

Prepare a single-step pro forma income statement for Calcor Company for the year ended November 30, 2009,

  Audit report modifications

Complete problem below. List a represents the types of opinions the auditor ordinarily would issue and List B represents the report modifications [if any] that would be necessary. Select as the best answer for each situation [items 1 to 6] the typ..

  Materials used by aro-products inc in producing division 3s

1. income from operations for divison b is 150000 total service department charges are 400000 and operating expenses

  Determine the amounts of other comprehensive income

Determine the amounts of other comprehensive income and comprehensive income for 2020. Net income for 2020 is $34,800

  Prepare a single-step income statement

Interest expense, $20,000; rent revenue, $95,000; net sales, $4,200,000; and selling expenses, $400,000. Prepare a single-step income statement

  What is the amount of cai companys total assets

The total assets of Yap Co. are $600,000 and its liabilities are equal to two-thirds of its total assets.What is the amount of Yap Co.'s stockholders' equity?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd